DEFENCE

Duke of York's Royal Military School andQueen Victoria School

Ivor Caplin: The Quinquennial review into the Duke of York's Royal Military School and Queen Victoria School has been discontinued before the production of a report in view of the constraints imposed by the royal warrants underpinning both foundations that effectively ruled out the review team's main recommendations, which involved removing the schools from Government control. The review did, however, identify a number of issues for further study. These will be taken forward by the Adjutant-General's headquarters in conjunction with the chief executive or head of each school. In the meantime, the two schools will remain as agencies of the Ministry of Defence.

HOME DEPARTMENT

L21A1 Baton Round

Hazel Blears: I have placed in the Library of the House a statement by the Defence Scientific Advisory Council (DSAC) on the ricochet potential of the L21A1 baton round. This baton round is used as a less lethal option by the police and the Army.
	The Ministry of Defence has carried out research on the post-ricochet trajectories and kinetic energy of baton rounds. The Sub-Committee, Defence Scientific Advisory Council has assessed the medical implications of the ricochets and has made a statement.
	The DSAC statement concluded that the experimental studies and analysis undertaken were an acceptable technical approach to the prediction of the risks.
	DSAC has recommended:
	Users should be made aware that L21A1 baton rounds can ricochet in some circumstances with high energy, and that the presence of obstacles and of personnel other than the intended target should form part of their risk assessment in the decision to fire the weapon;
	A desire for a reduction of the ricochet potential should be stated in the research and operational requirements of future kinetic energy weapon systems, and be evaluated experimentally.
	The Association of Chief Police Officers tell me that police firearms training addresses the ricochet potential of ammunition used by the police service. However, in order to ensure that this issue is specifically addressed, the results of these studies will be brought to the attention of persons responsible for firearms training in all forces throughout the United Kingdom. Current Army training on the use of baton rounds already addresses the issue of ricochet potential.

FOREIGN AND COMMONWEALTH AFFAIRS

NATO Parliamentary Assembly

Jack Straw: The hon. Member for Hereford (Mr. Keetch) has replaced the hon. Member for Portsmouth, South (Mr. Hancock) as a member of the United Kingdom delegation to the NATO Parliamentary Assembly.

TRADE AND INDUSTRY

Small Business

Nigel Griffiths: The Small Business Service (SBS) is today publishing a Government action plan for small business. It builds on existing Government support for small business, marshalling the whole of government behind the small business agenda. I am placing copies in the Libraries of both Houses.
	In December 2002, the SBS published Small Business and Government—The Way Forward—a strategic framework for a Government-wide approach to helping small businesses based around seven core themes: building an enterprise culture; encouraging a more dynamic start-up market; building the capability for small business growth; improving access to finance for small businesses; encouraging more enterprise in disadvantaged communities and under-represented groups; improving small businesses' experience of Government services; and developing better regulation and policy. These themes were identified as key drivers for economic growth, improved productivity and enterprise for all.
	Since then, partners at national, regional and local level have worked together using the strategic framework to develop a set of practical actions focused on improving policy and delivery as it affects small business.
	Actions identified in the plan, include:
	Consideration being given to extending the concept of common commencement dates for legislative and regulatory changes subject to the results of the employment law pilot now underway. Government will consult business on the priority areas and preferred dates;
	A review of the routes off benefits into self-employment to establish if more can be done to encourage and facilitate moves into self employment;
	The launch of a "core offer" for start-ups defining the service that all start-up businesses, wherever they are located, can expect;
	Completion of the establishment of a Council for Graduate Entrepreneurship;
	The publication of a "no nonsense guide" to access to finance for small businesses;
	A second phase of the Government's Phoenix Fund, to encourage specialist business support and entrepreneurship in disadvantaged areas;
	The development of a small business procurement concordat, to be signed by public sector bodies; and
	Further work to improve the coherence, accessibility and quality of Government services for small businesses building on the success of the cross-Government www.businesslink.gov.uk portal available since November 2003.
	Implementation of the Action Plan will require the involvement of a wide range of Government Departments and agencies and delivery partners. A web-based implementation programme is being made available at www.sbs.gov.uk setting out milestones and target dates for the implementation of the new actions. It will be updated on a regular basis to show the progress that is being made.

Gas Quality

Stephen Timms: My predecessor, the hon. Member for Cunninghame, North (Mr. Wilson), launched a three-phase strategy on 5 June 2003 to look at the issue of gas quality, as the UK becomes increasingly import dependent. Phase one was a scoping study on whether there would be a gas quality problem, in particular but not exclusively in relation to the Wobbe number. ILEX Energy Ltd was appointed to take this work forward. This study is now complete and an edited version of this report, without commercially sensitive information, is available on the DTI/Energy Website [www.dti.gov.uk/energy shtml/domesticmarkets/gas market/index]
	ILEX approached this study by carrying out a supply-demand analysis and identifying the main sources of gas required to meet the forecast demand. An assessment was then made of the likely quality of the various sources of imported gas and the implications of those gas supplies for Great Britain's entry terminals. ILEX had a number of meetings with future and potential future suppliers to gather quantitative data on the likely quality of gas from new import sources. These data, much of which are commercially sensitive, will be used by DTI, HSE and Ofgem to inform this exercise.
	During Phase 1 the DTI, HSE and Ofgem held a workshop to engage industry at the early stages of this exercise. The workshop was successful in providing a forum for industry to discuss gas quality issues.
	ILEX's work confirms that the future Wobbe 1 specification of much gas imported into the UK before processing, is likely to fall outside the current upper Wobbe limit in the Gas Safety Management Regulations (GSMR). The UK's increasing dependence on imported gas does therefore raise the question whether the current upper Wobbe limit should be increased.
	In the light of this result I have asked my officials to proceed with phase 2. Phase 2 will be a tripartite (DTI, HSE, Ofgem) consultation on the appropriate policy response. As my predecessor said, our broad policy options appear to be: the default option, to retain the current Wobbe limit (this would avoid the need to remove household appliances, but it would have the 1 The Wobbe Number represents a measure of the heat release when a gas is burned at constant gas supply pressure. The Wobbe limit range in The Gas Safety Management Regulations is between 47.20 MJ/cubic metre and 51.41 MJ/cubic metre. disadvantage of limiting UK access to the global gas market); or to change the current Wobbe limit (this would require the identification and removal of non-compliant gas appliances, but with an advantage in terms of facilitating gas imports).
	My officials, together with HSE and Ofgem, will be working over the next months to prepare the ground for a consultation exercise on the policy option. My officials are also in discussion with the European Commission and representatives of the gas industry in the EU, about the work being carried out at the EU level on gas quality and the interaction with the present exercise.
	I shall make a further statement to the House in due course to announce the forthcoming public consultation document. My Department would propose to hold a further workshop at that time.
	This exercise has been developed by the DTI as a member of the Sustainable Energy Policy Network (SEPN), which is working to deliver the Energy White Paper "Our Energy Future—creating a low carbon economy".

INTERNATIONAL DEVELOPMENT

CDC

Hilary Benn: On 27 November 2002, the then Secretary of State for International Development made a written statement to the House on the plans to reorganise CDC. This set out how CDC was to be reorganised into two separate organisations; an investment company and a new management company. I am now submitting a further written statement to inform the House on how these plans are being carried through.
	The purpose of the reorganisation of CDC is to maximise the creation and long-term growth of viable businesses in poorer developing countries, by making responsible investments and mobilising private capital alongside public funds. These objectives, which were set out in the 1997 and 2000 White Papers on International Development, remain unchanged.
	CDC's business now focuses on regions (South Asia and sub-Saharan Africa) and sectors where more investment is needed in order to help meet the Millennium Development Goals. It follows a set of pioneering responsible business principles that commit it to ethical, environmental and social best practice. CDC is also subject to an Investment Policy, which sets out the countries (the "CDC Universe") in which it may invest. The Policy includes two targets; that 70 per cent. of new CDC investment should be made in poorer developing countries, and that 50 per cent. of new investments should be in sub-Saharan Africa and South Asia.
	In order to improve CDC's performance and enhance the mobilisation of private investment in poorer developing countries, I have recently approved a reorganisation proposal on behalf of the Government.
	CDC is to be separated into two corporate entities and a family of Funds.
	Firstly, an investment company, which will continue to be named CDC and will be wholly-owned by the Government, will hold the existing and future cash and investment assets of CDC and its subsidiaries. This company will be responsible for ensuring that our capital is used in accordance with the investment policy. Secondly, a new independent management company, to be known as Actis, will be formed as a limited liability partnership between its management and staff (who will together have majority control) and the Government. Actis will raise and invest capital from CDC, from other development finance institutions and from private investors. It will follow responsible business principles and provide leadership and supervision for a family of Funds,
	The Funds will focus on Africa, South Asia, power, and SMEs, with smaller funds for China and Malaysia. Each will be managed by a dedicated fund management subsidiary of Actis or on a joint venture basis, and will be run on a commercial basis in order to attract capital from private investors and development finance institutions. This structure of a management company and a family of Funds is an accepted norm in the international fund management industry. It will allow Actis to manage Funds with a range of objectives, from strongly developmental to fully commercial, according to the requirements of target markets and the objectives and return requirements of investors including CDC.
	This dual company approach will help to establish Actis as an independent investment manager specialising in developing country markets, especially the poorer ones. It will also enable CDC, after an initial five year contract with Actis, to select its future investment manager(s) and thereby strengthen CDC's and the Government's ability to hold Actis and any other investment managers to their targets.
	I have agreed to the appointment of Malcolm Williamson as Chair of the Board of the new CDC. He has an admirable track record in the banking and financial sector and I expect that he will take up this new position within the next few weeks when the two new companies are formally established. The current Chair of CDC, Lord Cairns, has agreed to become Chair of Actis. I am very pleased that two such experienced and highly qualified professionals will be leading the new companies.
	I am writing to the Chair and members of the Select Committee on International Development about these changes. Later today, I will be making a public announcement about the new arrangements.